Indonesian Political, Business & Finance News

AMMP calls on anti-corruption commission to be transparent in exposing illegal cigarette excise tax mafia

| Source: ANTARA_ID Translated from Indonesian | Legal
AMMP calls on anti-corruption commission to be transparent in exposing illegal cigarette excise tax mafia
Image: ANTARA_ID

Jakarta — The chairman of the Red and White Student Alliance (AMMP), Paijo Parikesit, has called upon the Corruption Eradication Commission (KPK) to demonstrate transparency in exposing the illegal cigarette excise tax mafia in East Java.

According to him, illegal cigarette excise tax crime has resulted in substantial state losses due to lost potential excise and tax revenues. “Illegal cigarette circulation cannot be regarded as merely an administrative violation, but as a form of economic crime that directly impacts state finances and the management of the national tobacco industry,” Paijo stated in a statement received in Jakarta on Saturday.

He added that such practices also undermine the proper and fair operation of the tobacco industry. Consequently, he has expressed full support for the KPK to thoroughly investigate the case to its roots.

Paijo believes that the prevalence of illegal cigarette circulation indicates weaknesses in the surveillance system. It is possible that the practice involves a wider network.

Therefore, AMMP has stated that law enforcement must be conducted professionally, comprehensively, and without selective prosecution. The alliance has also urged the KPK to carry out investigation and prosecution transparently so that the public can monitor developments in the case.

“Transparency is crucial to maintaining public trust in Indonesia’s commitment to combating corruption,” he added.

As part of civil society, he emphasised his commitment to continue monitoring the law enforcement process against various practices that harm the state, including illegal cigarette trafficking.

Previously, AMMP had submitted several names of individuals suspected of involvement in illegal cigarette circulation to the KPK for further investigation, allegedly involving several major business figures.

Paijo hopes that law enforcement officials will take the report seriously and investigate the possible involvement of other parties in the illegal cigarette trading and excise network, particularly in East Java.

The Banyuwangi Customs and Excise Office in East Java uncovered illegal cigarette circulation, or cigarettes without excise stamps, in early 2026. They seized 6,585,560 cigarette sticks transported using three trucks.

The head of the Banyuwangi Customs and Excise Office, Latif Fahmi, stated that in addition to confiscating over 6.5 million cigarette sticks without excise stamps and three trucks, authorities also secured four individuals with initials ES (38), M (41), DAM (30) and M (41).

“According to the statements of the four individuals detained, the unstamped cigarettes were planned to be distributed in the Banyuwangi area and the island of Bali,” he said at a press conference at the Banyuwangi State Prosecutor’s Office on Thursday, 12 March.

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